Welcome to Crypto Long & Short, our institutional newsletter. This week, we focus on the need to safeguard the individuals building DeFi infrastructure.
Jennifer Rosenthal, chief communications officer at the DeFi Education Fund, highlights the importance of protecting these builders. Meanwhile, Alexis Sirkia, chairman and co-founder of Yellow Network, analyzes Ethereum's scaling problem, arguing that it was never about throughput, but rather about how value moves between participants.
He suggests that state channels could be a solution, allowing for peer-to-peer transactions off-chain, with the base layer serving as the enforcement mechanism. We also look at the latest headlines, including the impact of smart contract exploits on the market, and provide a chart of the week, showing Aave's market share slide after the rsETH exploit.